Posted on 11/16/2011 8:46:30 AM PST by TitansAFC
Speaker Gingrichs consulting firm, The Gingrich Group, was retained in 2006 by Freddie Mac. To be clear, Speaker Gingrich did no lobbying of any kind, nor did his firm. This was expressly written into the Gingrich Group contracts. Instead, the Gingrich Group was hired to offer strategic advice to Freddie Mac on a number of issues.
Speaker Gingrich has always believed that America should have programs to help low income people acquire the ability to buy homes. However, as a conservative, he also believed they have to be within a context of learning how to budget and save which makes it possible for the poor to afford what they were purchasing.
Therefore, on numerous occasions in meetings with Freddie Mac, Speaker Gingrich advised that a business model that involved lending money to people with bad credit and no money down was unsustainable and a bubble, and that it was dangerous to buy securities made up of these mortgages.
The Gingrich Group also offered advice on how Freddie Mac could lower their health costs. One piece of advice offered was that Freddie Mac had the resources to adopt a Travelocity model website for prescription drugs that would inform their employees of lower cost drug alternatives.
In addition, Freddie Mac was interested in advice on how to reach out to more conservatives. The Gingrich Group stressed that Freddie Mac must be open to reform of their lending practices but that by stressing the historical success of public-private partnerships in achieving public goods at a minimum of taxpayer money and bureaucracy.
Yes, Cain was a lobbyist but Newt never lobbyied
Newt did NOT lobby. He was consulted as a historian which is legal.
WOW, the scandal here is the Fannie and Freddie paid Newt $1.6M and did not take any of his good advise. I wonder how much they paid for the bad advise???? What a bunch of MAROONS!
You are off by a factor of 6; it was $1.8 Million and I have no problem with Newt making money with a legal contract.
Herman is my guy and I just donated again this week but Newt would be my back up if Herman fades.
Do you know that we pay top dollar to ex military brass for advice? in the millions? to engineers for highways? in the millions. Newt was offered the pay for his advice ...nothing illegal at all.
You identified the problem exactly. He is a welfare state “conservative” - the more efficient, smarter version of the Ds.
Where did I say it was illegal? Please read again, this time carefully, my post. Newt is a big government politician when he happily extracts millions of dollars from any tax supported institution. If you are happy with GWB’s control of government size, you will be ecstatic when Newt takes over.
$1.6 million bucks for that advice? Sheeze... I feel like such a whore, I'd have done it for half that price.
A historian? Ha, that’s a laugh.
Next you’ll say that all the payoffs Obozo got from Acorn were legit because he was consulting as a Community Organizer????
Where there’s stink there’s someone who stepped in it. And it seems to be getting deeper.
You should post that as a thread
Adding Newt’s recommended big-government savings and budgeting training wasn’t going to make it better.
Have you looked at Cain’s empowerment/opportunity zones? it concerns me.
Therefore, on numerous occasions in meetings with Freddie Mac, Speaker Gingrich advised that a business model that involved lending money to people with bad credit and no money down was unsustainable and a bubble, and that it was dangerous to buy securities made up of these mortgages.
ditto ^5
I agree. Just Cain’s empowerment zones are a nonstarter to me, let alone his appalling, cavalier ignorance on foreign affairs.
We are really in tough shape here looking for a presidential candidate.
You should read about the paid consultants giving advice to agencies from the US Post Office to the Dept of Transportation and The Defense Dept. It is legal and once the advice is offered (good or bad) it is up to those in charge on whether to take it.
OH ...12 freddie mac ceos received 35 million in bonuses between 2009 and 2010. Taxpayers will end up paying 220 billion in bailouts by 2014. Rep Baccus introduced legislation to end their bonuses...
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